How a green hydrogen boom can lead to additional renewable
It is predicted by IEA (International Energy Agency) that, by 2040, global energy demand will increase by 25-30%.
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Updated November 2026. This was first published on 10 August 2022. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- It is predicted by IEA (International Energy Agency) that, by 2040, global energy demand will increase by 25-30%.
- This, along with the push for electric vehicles and net-zero targets, has created a ripple effect on the economy.
- To understand this effect, let us go into some details.
It is predicted by IEA (International Energy Agency) that, by 2040, global energy demand will increase by 25-30%. This, along with the push for electric vehicles and net-zero targets, has created a ripple effect on the economy. To understand this effect, let us go into some details.
Electric vehicles can majorly be of two types – charged battery type and hydrogen-powered fuel cell vehicles. We need a lot of electricity in both cases - to maintain a huge charging infrastructure and to produce hydrogen. To meet this demand for electricity, countries can’t rely on coal-fired and other non-renewable energy-powered plants because that nullifies their climate change goals. Most countries still hugely depend on non-renewable sources for their energy needs and need to develop their renewable energy capacity to meet the demand. The application of electricity in charged EVs is simple, plug in and use the electricity. But hydrogen-powered vehicles are a bit complex. the fuel cell in these vehicles uses hydrogen and oxygen to produce electricity and water vapour. Thus, the only difference between EVs and FCEVs (Fuel Cell Electric Vehicles) is that the former doesn’t emit anything while the latter emits water vapour. This mandates that hydrogen must be commercially produced and obtained from various sources.
How is Hydrogen produced? #
There are multiple ways through which hydrogen can be produced commercially. Significant among them are coal gassification, steam methane reforming and electrolysis. Depending on how it is produced, it can be determined how clean the hydrogen is. Hydrogen produced through steam methane reforming and coal gassification leaves a much larger carbon footprint than that produced through electrolysis. Coal gassification uses non renewable energy sources like coal to produce hydrogen. and steam methane reforming can either be done by using petroleum products or biomass and they release CO2 into the air. But, both these methods can be made less polluting through carbon sequestration methods. Electrolysis is a much cleaner method because it splits water into hydrogen and oxygen by using electricity. CO2 is not released, but, the only polluting factor here is in how the electricity is produced. The carbon footprint there can be reduced by using renewable energy sources and when that is done, we call it green hydrogen.
A research paper by KJ Dillman and J Heinonen of the University of Iceland mentions that depending on the means of production, life cycle emission factors of hydrogen are between 0.5-25 kgCO2eq/kg H2. This means, a green hydrogen based economy can rapidly consume a significant portion of the remaining carbon budget and potentially lock-in hydrogen infrastructure unaligned with a below 1.5°C warming ‘safe’ space. Thus, a hydrogen-based circular economy is the most lucrative option to look at, from a climate change point of view. In terms of hydrogen production, green hydrogen seems to be the most sustainable option.
Why is hydrogen a better fuel? #
It is established that hydrogen is a much cleaner. there are some other properties that make it favourable to be used as a fuel. Firstly, hydrogen is the most abundant element, making it easily obtainable through many methods. Hydrogen can be stored and distributed easily. It is very flexible; It’s state can be changed depending on the requirement – as a high-pressure liquid, fused into liquid organic hydrogen carrier (LOHC) molecules, or as ammonia for long-term stability. “Hydrogen’s storability provides a strategic flexibility for countries and regions seeking to stabilize gas or electrical grids,” said Loic Charbonneau, global pursuit director, Emerson. Moreover, hydrogen is a more efficient fuel. Fuel cells are powered by hydrogen and they have an efficiency of 65% as compared to around 35% using conventional electricity production methods. This property also makes it very attractive to be used in spaceships.
Relation between green hydrogen and renewable energy #
Favouring the production of green hydrogen over other methods can save 830 million tonnes of CO2. Data from IEA reveals that, in 2020, global electrolyser capacity stood at 0.3 GW, mostly using grid electricity to produce hydrogen. It is estimated that almost half of this increased capacity will be sourced from existing renewable energy establishments. The other half will be sourced from the creation of additional renewable energy capacity. Out of this additional capacity, it is projected that China will lead the way with 7.8GW, followed by Europe(4.1GW), Latin America(3.9GW), Asia Pacific(1.3GW), and North America(0.4GW). These projects range from 1-10MW in capacity. The larger projects ranging from 10-100MW are estimated to bring 18GW of additional renewable capacity, making a total of 35GW overall capacity. If we look at the number of planned projects, China, Chile, Spain and Australia alone could contribute eighty five percent to the above 18GW capacity. If we track down the electrolyser plan announcement and targets of various countries, by 2021, announcements of over 260GW capacity have been made globally. This much electrolyser capacity is estimated to bring at least 465GW of renewable energy capacity with it, with wind and solar accounting for 247.6GW. Out of these announced and planned projects, Europe has the most at 196.6 GW. IEA says this is linked to two factors - EU’s green hydrogen targets and the associated funding towards decarbonising their hard-to-abate sectors to ultimately achieve their net-zero goal. Following Europe in these targets are Asia Pacific(102.9GW), Eurasia(45GW), China(43GW), Middle East(38.1GW), Africa(30GW), Latin America(16.6GW) and North America(1.8GW). IEA Executive Director Fatih Birol said that in 2021, a record was created when 290GW of renewable energy was added. “This is a sign that a new global energy economy is emerging”, he added. Renewable electricity capacity by 2026 will equal the current total global power capacity of fossil fuels and nuclear energy combined, the IEA added.
As is evident from the above facts and data, there is a huge ambition among countries to expand electrolyser and consequently, the renewable energy capacity. But, subject to funding and government policies, how much of the target will be achieved is yet to be seen.
Conclusion #
Green hydrogen has paved a way for countries to develop roadmaps for the deployment of more renewable energy capacity. The fuels derived from green hydrogen such as ammonia, methanol, and aviation fuels are a great alternative to high carbon fuels used predominantly today. Thus, it serves the dual purpose of energy security as well as decarbonisation of the economy. Use of green hydrogen can create secondary environmental and economic benefits like new jobs and export opportunities. But, challenges remain as the cost of green hydrogen ranges from $6-12 per kilogram depending on the region. There is limited infrastructure for production, storage, transmission, and distribution. Moreover, to completely replace grey hydrogen, 3,000 TWh/year from new renewables is required. Not to mention, the highly volatile and flammable nature of hydrogen which asks for extensive safety measures. Thus, a huge amount of investment is required in this regard. While countries are making forward looking and ambitious plans, proper setup of those plans need to be ensured. Governments across the world should promote R&D to reduce costs while maintaining quality. Moreover, infrastructure such as gas grids, transmission lines, etc should also be developed simultaneously to support a strong green hydrogen economy in the future.
Questions and answers #
How is Hydrogen produced? #
There are multiple ways through which hydrogen can be produced commercially. Significant among them are coal gassification, steam methane reforming and electrolysis.
Why is hydrogen a better fuel? #
It is established that hydrogen is a much cleaner. there are some other properties that make it favourable to be used as a fuel.